The US dollar traced a nearly textbook perfect head and shoulders top against the Canadian dollar in March after rallying in February, according to analysts at BBH.
“The neckline (~CAD1.28) broke on April 3 but was still flirting with it on April 9. Still, playing for the breakout worked here, and the US dollar fell to CAD1.2545 in the middle of last week before consolidating. The measuring objective of the pattern is near CAD1.2475. The weekly technical studies suggest further US dollar losses are likely, but the daily indicators are warning the market is stretched. Initial US dollar resistance is seen near CAD1.2650.”
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